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Peru will be winner in free trade negotiations with China

Peru will emerge as the winner when negotiations of the Free Trade Agreement (FTA) with China are concluded, said Tuesday the minister of Foreign Trade and Tourism, Mercedes Araoz.

"That's the goal. I must make clear that our technical team will not give up, since we are working on a deal that will make us all win, especially our productive sectors".

In this way, she ruled out any possibility that during the Sixth Round of Negotiations of the FTA, from October 13 to 18 in Beijing (China), Peru would reduce the basket of sensitive products included in the negotiation.

The Peruvian technical team is working hard to reach a much wider agreement than just negotiating a tariff movement from either part.

Therefore, other subjects such as customs (which will have adequate cooperation), services, labor and even intellectual property are also being negotiated.

"This FTA is being negotiated thinking of the Peruvian economic growth, which should not only be tied to the current economic cycle, which is bad, but the future economic cycle".

On the eve, several business associations attended the Commission of Foreign Trade and Tourism of the Congress to unveil the situation of the negotiations, and ask the Ministry of Foreign Trade and Tourism (Mincetur) not to give up on the free trade deal with China.

They warned that China's proposal to reduce the list of exclusions from 13.89 to ten percent of sensitive items would put into risk Peruvian products such as footwear, textiles and garments.

Minister Aráoz made clear that the Peruvian team would not accept any immediate duty elimination on sensitive products.

"At no time did we say that the textile sector will be subject to any duty elimination and we will never do it, we talked about partial breaks and long term duty elimination, that is, 17 years. In addition, we will keep the most sensitive products on the list of ten percent".

She recalled that the Mincetur works on its own strategy with business associations to follow up FTA negotiations. "You can be sure that a good job is being done".

"I know the unions attended the Congress to express their concerns, but on the other hand, we made the lists of access with them themselves. The negotiation is not for today but forever and that is a negotiation with clear rules for bilateral trade, which is the most important thing for business".

News source: ANDINA

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# David N says :
7 October, 2008 [ 16:27 ]

Well, we all know about the predictions of Peruvian officials.

Garcia said Peru was immune to the happenings in the world financial market, and the Lima stock market lost 28% of it's value the next day.

These folks are pretty incompetent and unknowledgeable.  My take on negotions with the Peruvian government is how much cash can be slid under the table determines how favorable the terms end up.

# Father Mao Zedong's Ghost says :
7 October, 2008 [ 20:06 ]

I am glad that the beautiful country of Peru has decided to look the other way for the sake of money. I understand that I murdered millions, and that one of your own, Abimael Guzman, was responsible for thousands of more deaths in your country as a result of my communist ideology. So remember comrades, if you are ever in the beautiful communist country of Red China, be sure and keep your personal religious beliefs to yourself. In China, my ideology holds true. Get caught praying to the Holy Mother or her Son, you will be shot in the back of the head with our Russian knock off AK-47's, and your kidneys sold off to the highest bidder. Oh, don't bring any Bibles or Ipods here or we will take them away from you as soon as you step off of the plane.

# CapitanDan says :
7 October, 2008 [ 21:35 ]

As David and the Ghost say, I have little faith in the ability of the Peruvian government in negociating anything. It seems they can be bought cheaper than a chinese copied Rolex. The corruption is so prevalent that President Garcia can't hide it. Chau Friends

# David says :
7 October, 2008 [ 22:29 ]

I'd like to point out that the stock market lossing 28% took place over the course of 1 year not 1 day.

At least that is how I read it, I could be wrong.

# David N says :
8 October, 2008 [ 00:21 ]

Yes David in my haste I did not word my comment correctly. 

Garcia is an inept fool, he doesn't even know what is happening in Lima, let alone on Wall Street.  It is incomprehensible that he was elected for a second time.

# David says :
8 October, 2008 [ 12:32 ]

The way the headline was written it made it seem as though the market feel 28% in one day. I was fooled until I read the artical.

Garcia has a short saty left, his replacment hopefully can pick up the econmy before things get to bad but as with any elected official you then have to spen half your time fixing the mistakes of the person before you.

Sems like a never ending cycle. 1 step up 2 steps back. I do wish a little more progress would make it's way into Peru, it has such potential.

# sandra says :
8 October, 2008 [ 13:41 ]

I've been reading and looking at some interesting things about Peru-next best to going there!  Enjoy your prep!  Love, Gale

# David N says :
8 October, 2008 [ 13:43 ]

David, 

Things will never change in Peru so long as the electorate is forced to go to the polls and vote.  Threatening voters with a fine if they don't show up and punch a ballot is foolish, because those that are uninformed and uninterested will vote for just anybody.  Yes voting is important, but if someone is oblivious to the issues they should have the right to abstain.  What we end up with is not the best candidate, but the one with the easiest name or the first in the alphabet.  It's ridiculous.

Agreed that Peru has much potential, but it is infuriating to listen to Peruvians tell me "oh, it's not so bad."  They should be angry, but instead are simply passive.  I'm currently in an argument on another thread about air pollution.  Heck, children in Peru are dying of respiratory diseases from the noxious fumes over Lima, but nobody cares.  They should be demanding their government do something, but we get nothing but business as usual.  I've just about had my fill of this mentality. 

# Rachel says :
8 October, 2008 [ 16:09 ]

"It is incomprehensible that he was elected for a second time."

It was a choice between Beelzebub or Mephistophelis.

Anyway, Peru signing a FTA with China is like signing a contract with the Devil.

# gina says :
8 October, 2008 [ 16:22 ]

What is so wonderful about China,  the market in Usa is swamped with cheap , bad merchandise from China, even  lethal cockies are being taken out of the market.
why Peru that has wonderful and unlimited resources does not develop it's own industries, why they have to import?
Why we are importing rice, flower, etc.  maybe we need to import potatoes too in the land of the potatoes.
Lets give help to our farmers , they need to sell their products to survive.

# rice and sugar says :
9 October, 2008 [ 09:08 ]

I agree with Gina's comment.
I don't know why government does not invest in local agricultural products, local industries, etc.
Beats me.
I can only imagine lots of corruption chains

# David says :
9 October, 2008 [ 22:24 ]

David N,

Is it possible that most Peruvians don't know the differance in air quality from one city to the next as they have not travled as many from North America and Euorpe have.

I don't really know I'm more looking for an excuse then anything else. I do completely agree that air quality in Lima is horrible, my eye burn when I arrive and I can feel it in my nassle passages also for days.

You have to admit that you take a rather hard stance on the issues though and I can see where someone native to Peru would take exception to your words.

(I should talk) If you try more constructive critisim in your comments you may get a better reaction. I am assuming that you would like a better reaction.

P.S. Why not join the forums, I could use another person with an opinion.